The maximum incremental social tolerable irreversible costs (MISTICs) and other benefits and costs of introducing transgenic maize in the EU-15

Justus Wesseler, Sara Scatasta and Eleonora Nillesen

MPRA Paper from University Library of Munich, Germany

Abstract: The decision to release a new transgenic crop variety for planting in the European Union (EU) is a decision under irreversibility and uncertainty. We use a real option model to assess the ex-ante incremental benefits and costs of the decision to release Bt maize and HT maize in the EU-15 member states. The analysis uses Eurostat data for modelling the benefits and costs of non-transgenic maize using partial equilibrium models. The farm-level benefits and costs of Bt maize and HT maize are derived from field trials conducted within the EU-funded ECOGEN project in combination with secondary data sources. Adoption curves, hurdle rates and Maximum Incremental Social Tolerable Irreversible Costs (MISTICs) are calculated at country level for selected EU-15 member states. In general, the results show that the MISTICs on a per capita level are very small confirming previous results calculated in values for the year 1995. The MISTICs per farm are much larger. This indicates a problem for decision makers.

Keywords: agriculture policy; biotechnology; GMOs; MISTICs; technical change (search for similar items in EconPapers)
JEL-codes: O33 Q18 Q51 (search for similar items in EconPapers)
Date: 2007-04-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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